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Operating Segments and Related Information | 12 Months Ended
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May. 31, 2015
Segment Reporting [Abstract] |
Operating Segments and Related Information |
NOTE 18 — Operating Segments and Related Information
The Company’s operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity. Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company’s reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets, and include results for the NIKE, Jordan and Hurley brands. The Company’s NIKE Brand Direct to Consumer operations are managed within each geographic operating segment. Converse is also a reportable segment for NIKE, Inc., and operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories. Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment, and demand creation, operating overhead and product creation and design expenses that are centrally managed for the NIKE Brand. Corporate consists largely of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as “EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Consolidated Statements of Income. Reconciling items for EBIT represent corporate expense items that are not allocated to the operating segments for management reporting. As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic operating segments and to Converse. These rates are set approximately nine months in advance of the future selling season based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect use of these standard rates to record non-functional currency product purchases in the entity’s functional currency. Differences between assigned standard foreign currency rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from the Company's centrally managed foreign exchange risk management program and other conversion gains and losses. Accounts receivable, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below. Additions to long-lived assets as presented in the following table represent capital expenditures. Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation.
|  | Year Ended May 31,
(In millions) |  | 2015 |  | 2014 |  | 2013
REVENUES |  |  |  |  |  |
North America |  | $ | 13,740 |  |  | $ | 12,299 |  |  | $ | 11,158 |
Western Europe |  | 5,709 |  |  | 4,979 |  |  | 4,193 |
Central & Eastern Europe |  | 1,417 |  |  | 1,387 |  |  | 1,229 |
Greater China |  | 3,067 |  |  | 2,602 |  |  | 2,478 |
Japan |  | 755 |  |  | 771 |  |  | 876 |
Emerging Markets |  | 3,898 |  |  | 3,949 |  |  | 3,832 |
Global Brand Divisions |  | 115 |  |  | 125 |  |  | 115 |
Total NIKE Brand |  | 28,701 |  |  | 26,112 |  |  | 23,881 |
Converse |  | 1,982 |  |  | 1,684 |  |  | 1,449 |
Corporate |  | (82 | ) |  | 3 |  |  | (17 | )
TOTAL NIKE CONSOLIDATED REVENUES |  | $ | 30,601 |  |  | $ | 27,799 |  |  | $ | 25,313 |
EARNINGS BEFORE INTEREST AND TAXES |  |  |  |  |  |
North America |  | $ | 3,645 |  |  | $ | 3,077 |  |  | $ | 2,639 |
Western Europe |  | 1,277 |  |  | 855 |  |  | 643 |
Central & Eastern Europe |  | 247 |  |  | 279 |  |  | 234 |
Greater China |  | 993 |  |  | 816 |  |  | 813 |
Japan |  | 100 |  |  | 131 |  |  | 139 |
Emerging Markets |  | 818 |  |  | 952 |  |  | 985 |
Global Brand Divisions |  | (2,263 | ) |  | (1,993 | ) |  | (1,716 | )
Total NIKE Brand |  | 4,817 |  |  | 4,117 |  |  | 3,737 |
Converse |  | 517 |  |  | 496 |  |  | 425 |
Corporate |  | (1,101 | ) |  | (1,036 | ) |  | (909 | )
Total NIKE Consolidated Earnings Before Interest and Taxes |  | 4,233 |  |  | 3,577 |  |  | 3,253 |
Interest expense (income), net |  | 28 |  |  | 33 |  |  | (3 | )
TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES |  | $ | 4,205 |  |  | $ | 3,544 |  |  | $ | 3,256 |
ADDITIONS TO LONG-LIVED ASSETS |  |  |  |  |  |
North America |  | $ | 208 |  |  | $ | 240 |  |  | $ | 132 |
Western Europe |  | 216 |  |  | 120 |  |  | 75 |
Central & Eastern Europe |  | 20 |  |  | 19 |  |  | 22 |
Greater China |  | 69 |  |  | 63 |  |  | 52 |
Japan |  | 15 |  |  | 9 |  |  | 7 |
Emerging Markets |  | 37 |  |  | 55 |  |  | 50 |
Global Brand Divisions |  | 225 |  |  | 225 |  |  | 270 |
Total NIKE Brand |  | 790 |  |  | 731 |  |  | 608 |
Converse |  | 69 |  |  | 30 |  |  | 20 |
Corporate |  | 144 |  |  | 161 |  |  | 153 |
TOTAL ADDITIONS TO LONG-LIVED ASSETS |  | $ | 1,003 |  |  | $ | 922 |  |  | $ | 781 |
DEPRECIATION |  |  |  |  |  |
North America |  | $ | 121 |  |  | $ | 109 |  |  | $ | 92 |
Western Europe |  | 75 |  |  | 71 |  |  | 68 |
Central & Eastern Europe |  | 12 |  |  | 11 |  |  | 9 |
Greater China |  | 46 |  |  | 38 |  |  | 32 |
Japan |  | 22 |  |  | 19 |  |  | 22 |
Emerging Markets |  | 27 |  |  | 25 |  |  | 20 |
Global Brand Divisions |  | 210 |  |  | 175 |  |  | 122 |
Total NIKE Brand |  | 513 |  |  | 448 |  |  | 365 |
Converse |  | 18 |  |  | 16 |  |  | 15 |
Corporate |  | 75 |  |  | 54 |  |  | 38 |
TOTAL DEPRECIATION |  | $ | 606 |  |  | $ | 518 |  |  | $ | 418 |
|  | As of May 31,
(In millions) |  | 2015 |  | 2014
ACCOUNTS RECEIVABLE, NET |  |  |  |
North America |  | $ | 1,737 |  |  | $ | 1,505 |
Western Europe |  | 344 |  |  | 341 |
Central & Eastern Europe |  | 242 |  |  | 280 |
Greater China |  | 84 |  |  | 68 |
Japan |  | 134 |  |  | 162 |
Emerging Markets |  | 461 |  |  | 819 |
Global Brand Divisions |  | 88 |  |  | 71 |
Total NIKE Brand |  | 3,090 |  |  | 3,246 |
Converse |  | 258 |  |  | 171 |
Corporate |  | 10 |  |  | 17 |
TOTAL ACCOUNTS RECEIVABLE, NET |  | $ | 3,358 |  |  | $ | 3,434 |
INVENTORIES |  |  |  |
North America |  | $ | 2,207 |  |  | $ | 1,758 |
Western Europe |  | 699 |  |  | 711 |
Central & Eastern Europe |  | 169 |  |  | 271 |
Greater China |  | 249 |  |  | 221 |
Japan |  | 94 |  |  | 94 |
Emerging Markets |  | 528 |  |  | 633 |
Global Brand Divisions |  | 32 |  |  | 18 |
Total NIKE Brand |  | 3,978 |  |  | 3,706 |
Converse |  | 237 |  |  | 261 |
Corporate |  | 122 |  |  | (20 | )
TOTAL INVENTORIES |  | $ | 4,337 |  |  | $ | 3,947 |
PROPERTY, PLANT AND EQUIPMENT, NET |  |  |  |
North America |  | $ | 632 |  |  | $ | 545 |
Western Europe |  | 451 |  |  | 384 |
Central & Eastern Europe |  | 47 |  |  | 51 |
Greater China |  | 254 |  |  | 232 |
Japan |  | 205 |  |  | 258 |
Emerging Markets |  | 103 |  |  | 115 |
Global Brand Divisions |  | 484 |  |  | 537 |
Total NIKE Brand |  | 2,176 |  |  | 2,122 |
Converse |  | 122 |  |  | 70 |
Corporate |  | 713 |  |  | 642 |
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET |  | $ | 3,011 |  |  | $ | 2,834 |
Revenues by Major Product Lines Revenues to external customers for NIKE Brand products are attributable to sales of footwear, apparel and equipment. Other revenues to external customers consist primarily of sales by Converse.
|  | Year Ended May 31,
(In millions) |  | 2015 |  | 2014 |  | 2013
Footwear |  | $ | 18,318 |  |  | $ | 16,208 |  |  | $ | 14,635 |
Apparel |  | 8,636 |  |  | 8,109 |  |  | 7,491 |
Equipment |  | 1,632 |  |  | 1,670 |  |  | 1,640 |
Other |  | 2,015 |  |  | 1,812 |  |  | 1,547 |
TOTAL NIKE CONSOLIDATED REVENUES |  | $ | 30,601 |  |  | $ | 27,799 |  |  | $ | 25,313 |
Revenues and Long-Lived Assets by Geographic Area After allocation of revenues for Global Brand Divisions, Converse and Corporate to geographical areas based on the location where the sales originated, revenues by geographical area are essentially the same as reported above under operating segments with the exception of the United States. Revenues derived in the United States were $14,180 million, $12,711 million and $11,385 million for the years ended May 31, 2015, 2014 and 2013, respectively. The Company’s largest concentrations of long-lived assets primarily consist of the Company’s world headquarters and distribution facilities in the United States and distribution facilities in Japan, Belgium and China. Long-lived assets attributable to operations in the United States, which are primarily composed of net property, plant & equipment, were $1,877 million and $1,652 million at May 31, 2015 and 2014, respectively. Long-lived assets attributable to operations in Japan were $205 million and $258 million at May 31, 2015 and 2014, respectively. Long-lived assets attributable to operations in Belgium were $234 million and $175 million at May 31, 2015 and 2014, respectively. Long-lived assets attributable to operations in China were $267 million and $234 million at May 31, 2015 and 2014, respectively. Major Customers No customer accounted for 10% or more of the Company’s net revenues during the years ended May 31, 2015, 2014 and 2013.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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